On Tuesday, the S&P/ASX 200 Index (ASX: XJO) ended the year with a disappointing decline. The benchmark index fell 0.9% to 8,159.1 points.
Will the market be able to bounce back from this on Thursday? Here are five things to watch:
ASX 200 expected to open flat
The Australian share market looks set for a flat start to the week following a poor session in the United States on New Year's Eve. According to the latest SPI futures, the ASX 200 is expected to open the day right where it ended the last session. On Wall Street, the Dow Jones was down 0.1%, the S&P 500 was down 0.4%, and the Nasdaq dropped 0.9%.
Oil prices rise
ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good session after oil prices pushed higher on New Year's Eve. According to Bloomberg, the WTI crude oil price is up 1% to US$71.72 a barrel and the Brent crude oil price is up 0.9% to US$74.64 a barrel. This couldn't stop Brent crude oil from posting a 3% annual decline. This is the second year in a row of declines.
QBE shares rated as a buy
QBE Insurance Group Ltd (ASX: QBE) shares could be in the buy zone according to analysts at Goldman Sachs. The broker has retained its buy rating and $20.00 price target on the insurance giant's shares. It notes that Guy Carpenter (GC) and AON released their initial view of 1 January 2025 reinsurance renewals and the "updates as incrementally positive" for QBE.
Gold price rises
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price pushed higher on New Year's Eve. According to CNBC, the gold futures price is up 0.9% to US$2,641 an ounce. This means that the precious metal had its best year since 2010.
IAG shares still rated neutral
Goldman Sachs isn't as positive on Insurance Australia Group Ltd (ASX: IAG) shares and has reaffirmed its neutral rating and $7.50 price target. The broker also believes that it stands to benefit from GC and AON reinsurance renewals. It notes that "Insurers were also able to purchase protection at lower levels driven by increased reinsurer appetite."
